Reference no: EM132529202

The following information is available about the August transactions of the Helpful Tool Company:

Invoice for good product during the month $493000

product cost charged to WIP $737000

cost of finished goods manufactured $718000

cost of good sold $ 739000

Question 1: The product costs to be deducted from revenue in August amount to:

Select one:

a.$737,000.

b.$739,000.

c.$718,000.

d. $493,00

Question 2: Manufacturing companies normally have three types of inventory:

Select one:

a.Raw materials, work in process, and finished goods.

b. Direct materials, direct labor, and manufacturing overhead.

c. Work in process, finished goods, and returned merchandise

d. Economy, standard, and deluxe

Question 3: A predetermined overhead application rate:

Select one:

a.Expresses an expected relationship between overhead costs and an activity base.

b.Is computed at the end of the period once actual overhead costs are known.

c.Applies the same amount of overhead to each product or service.

d. Can be determined by dividing budgeted direct labor cost by the budgeted factory overhead costs

Question 4: Moran Company uses a job order cost system and has established a predetermined overhead application rate for the current year of 150% of direct labor cost, based on budgeted overhead of $900,000 and budgeted direct labor cost of $600,000. Job no. 1 was charged with direct materials of $36,000 and with overhead of $27,000. What is the total cost of job no. 1?

Select one:

a. $91,000.

b. $81,000.

c. Cannot be determined without additional information.

d. $64,000

Question 5: Process costing would be suitable for:

Select one:

a. Kitchen remodeling.

b. Boat building.

c. Production of television sets.

d. Automobile repair.

Question 6: Sue's Soup Products uses a process costing system with two processing departments: the Mixing and Cooking Department and the Canning Department. Work in process inventories are reduced to zero each month. In March, the Mixing and Cooking Department incurred manufacturing costs of $63,000 to mix 42,000 gallons of soup. The Canning Department incurred manufacturing costs of $9,000. A total of 170,000 cans of soup were transferred to the finished goods warehouse during the month.

Refer to the information above. The unit cost per gallon of soup transferred to the Canning Department during March was:

Select one:

a. $1.83.

b. $1.50.

c. $1.62.

d. $1.71.

Question 7: Sue's Soup Products uses a process costing system with two processing departments: the Mixing and Cooking Department and the Canning Department. Work in process inventories are reduced to zero each month. In March, the Mixing and Cooking Department incurred manufacturing costs of $63,000 to mix 42,000 gallons of soup. The Canning Department incurred manufacturing costs of $9,000. A total of 170,000 cans of soup were transferred to the finished goods warehouse during the month.

Refer to the information above. The unit cost per can of soup transferred to the finished goods warehouse during March was:

Select one:

a. $0.37.

b. $0.42.

c. $0.05.

d. $1.71.

Question 8: Evans Products uses a process costing system with two processing departments: the Mixing Department and the Finishing Department. In June, unit costs incurred by the Mixing Department amounted to $4.00 per unit. Unit costs transferred to the finished goods warehouse during the month amounted to $22. Work-in-process inventories are reduced to zero each month.

Refer to the information above. The transfer of 35,000 units to the Finishing Department in June required

Select one:

a. A debit to Work-in-Process Inventory, Finishing Department of $140,000

b. A credit to Work-in-Process Inventory, Finishing Department of $140,000.

c. A debit to Finished Goods Inventory of $770,000.

d. A credit to Work-in-Process Inventory, Mixing Department of $770,000